Mark Carney, the Bank of England governor, said that Britain was not ready for a no-deal Brexit. The Bank’s analysis was dismissed as “fraudulent” by BrexiteersGetty Images

Britain would be plunged into its deepest recession since the 1930s under a disorderly no-deal Brexit, the Bank of England warned yesterday.

House prices could fall by 30 per cent, interest rates rise to 5.5 per cent and the economy shrink by 8 per cent — a greater contraction than after the 2008 financial crisis — its worst-case scenario showed.

Ben Broadbent, one of the Bank’s deputy governors, said that this would be worse than any crisis since “we went back on gold” and the economy subsequently crashed in 1930. In the 2008 financial crisis the British economy shrank by 6.3 per cent.

The Bank gave its assessment hours after a Whitehall analysis suggested that the economy would shrink under all versions of Brexit.